State says yes to new DTE plant in East China

DTE has submitted plans with the state to build a natural gas-fired power plant in East China Township. The 1,100-megawatt plant will be constructed in 2019 on about 100 acres of property east of the Belle River power Plant.(Photo: Brian M. Wells/Times Herald)Buy Photo

LANSING - The Michigan Public Service Commission has approved DTE Energy's certificates of necessity to build a new $1 billion combined-cycle natural gas-fired power plant in East China Township.

“We are extremely disappointed in the commission’s decision to approve DTE’s costly natural gas plant," said Sam Gomberg, senior energy analyst at the Union of Concerned Scientists’ Midwest office, in the news release. "Given the availability of lower-cost clean energy alternatives, this decision exposes Michigan ratepayers to unnecessarily high rates, a litany of risks associated with fossil fuel dependence and significant levels of pollution and carbon emissions."

But in a statement from the Economic Development Alliance of St. Clair County, County Commissioner Jeff Bohm called approval good news for the county and the state.

"The new, cleaner natural gas power plant will create hundreds of jobs and provide additional revenue that we can put toward improving our roads, schools and other essential services," he said. "With three coal-fired plants scheduled to retire, we need the affordable, reliable energy that natural gas plants provide.

"This $1 billion investment is a significant boost to our community and helps assure continued job growth while ensuring we can meet our state’s energy needs,” he said.

Also in the statement, East China Township Supervisor Larry Simons welcomed the news.

“Our township has enjoyed a strong relationship with DTE over the years,” he said. “This project is going to strengthen the economic vitality of the region and township and enable us to continue to provide critical services to our residents. We look forward to being proactive partners with DTE and its contractors during the construction process.”

Trevor Lauer, president of DTE's electric company, called Friday's approval "a really important milestone for moving this plant forward."

He said the company will be working with the state and local governments to move the project through the pemit process.

"Combining that with our renewables build provides a great foundation for our customers and state of Michigan," he said.

DTE Energy in August submitted plans to the state to build a 1,100-megawatt power plant on about 100 acres of land in East China Township east of the company's Belle River Power Plant. The plant is expected to provide power for about 850,000 homes beginning in 2022.

Lauer told the Times Herald for an earlier story that building the natural gas plant would allow DTE to shut down three coal-fired power plants: the St. Clair Power Plant in East China; the River Rouge Power Plant; and the Trenton Channel Power Plant.

He also said it would cost three times as much to replace the generating capacity of the three plants with renewable energy sources such as solar and wind.

The proposed construction project would employ about 600 workers at peak and would continue through 2021, according to information from DTE. It also would provide an economic boost to East China and China townships, the East China School District and nearby communities such as St. Clair and Marine City.

The St. Clair Power Plant is expected to be closed between 2020 and 2023, according to Lauer.

He said using natural gas as a fuel reduces pollutants produced by electrical generation using coal as a source by about 50 percent.

"DTE announced an 80 percent carbon footprint reduction in 2017," he said. "That not only takes a leadership position in the state of Michigan but also within the industry."

He said DTE will bring online this year the state's largest wind farm and that the plant would work in tandem with the utility's 13 utility-scale wind farms and 31 utility-scale solar farms

"This plant will provide 24/7 power to the state’s manufacturing economy, when the sun doesn’t shine and the wind doesn’t blow," Lauer said.

"This is important. This plant works hand in hand with our renewable build. I can’t say it enough. We strongly support renewable energy."

He said the coal supply for the company's Belle River Power Plant will remain at the East China site.

In his statement, Gromberg said DTE's proposal was "based on a flawed and biased analysis that includes unreasonably optimistic projections about natural gas prices, inaccurate assumptions about clean energy prices and capabilities, and a failure to consider cheaper, cleaner and less risky alternatives."

Contact Bob Gross at (810) 989-6263 or rgross@gannett.com. Follow him on Twitter @RobertGross477.